Hello all,
I used lending tree to see if I could get an auto loan. We could use a bigger vehicle with a child and a dog and all the things that comes with that 
. Anyhow, I defaulted on a car loan about about 5 years ago and it was charged off after the vehicle was repo'd. I have a concern about being sued and I have noted lately that the OC of the charge off has recently updated the charge-off on my CR.
Am I treading in dangerous waters?
Starting Score: 604
The first thing you need to do is find out what the statute of limitations on written contracts is in your state. That will tell you whether they can still sue you for the deficiency. I don't believe that the application for the new loan would have a great bearing on their decision, although it may indicate to them that you have the financial resources to make it worth their while if they were to soft your credit reports and see a new loan.
And even though you didn't ask if you have no auto loan experience since the repossession you are probably going to be hit with an excessive interest rate on a new purchase. Your best bet would be to let the old loan and charge off drop from your report before seeking a new loan. A sub prime loan is not in most peoples best interest unless it is your only option as in you must replace your current vehicle, not just it would be nice to replace.
Thanks for the reply. I already know the SOL is ten years on promissary notes and in Illinois...I did already get approved at 7% which is not fantastic, but it gives a dealer something to compete with in order to earn my business. Like you said, I am concerned they will see, I can make payments and try to get at me.
That's a decent rate for the loan. Like you said, see if the dealer can beat it. If the old debt does result in a suit then be sure and respond as necessary. I was able to settle a judgment for about 35% with a one time payment in full. Just get everything in writing including an agreement to withdraw a court case if you settle after their filing but before the civil trial date.